The second international Elite Estate conference has taken place in Saint-Petersburg, “Park Inn Pulkovskaya” hotel on May 13-14/2009. About 300 specialists from Russia and foreign countries have participated in the event. Business tours for the conference participants were held on May 14th along with a press tour for Mass Media representatives. The Elite Estate conference was organized with support of the leading Russian and foreign professional associations. The organizer of the conference is the Group of companies “Bulletin of Real Estate”.
The conference has provided a unique opportunity for the elite real estate market professionals to get to know the leading native and foreign technologies, exchange their points of view on development of this segment of the market, meet colleagues and find new business partners, says the chairman of the Elite Estate Organizing committee, president of FIABCI-Europe, Alexander Romanenko. Ñhairman of Saint-Petersburg Government investment and strategic projects committee, Maksim Sokolov has mentioned when presenting his speech at the conference opening , that condition of the elite real estate sphere is the indicator of other residential and commercial real estate segments development. «Elite Estate – is a very important event. Exchange of opinions between the real estate market professionals will help to reach correct decisions when choosing the ways of further development», - he added.
President’s plenipotentiary of the Russian Guild of realtors in the North-Western region, Pavel Sozinov has declared in his opening speech that the conference is becoming one of the most important professional events. «Elite Estate has become a place where Russian and foreign professionals, working with the elite real estate sphere, meet and discuss their business. The conference has proved itself as a very serious business area where questions of civilized real estate market establishment and development are regarded», – he said. By Mr. Sozinov’s words, the question of criteria and classification of elite real estate objects needs to be discussed once again during the conference. «This question was one of the most under discussion last year. I think that next year this topic will make us gather again», – summarized Mr. Sozinov.
By the words of Ekaterina Romanenko, the president of Saint-Petersburg and the Leningrad Region Realtors Association, peculiarity of elite real estate is in its own uniqueness and uniqueness of it’s buyers.«There are its own law and regulations, which need to be discussed by the Elite Estate participants», – she mentioned.
In the opinion of Irina Gudkina, promotion director of the Group of companies “Bulletin of Real Estate”, elite real estate market has survived a very difficult time: «We all have changed our work according to the new economical reality. Elite Estate is not only a conference on elite properties, but also an event for the best in their profession. Even at this difficult moment we are ready to share our experience and feel obliged for condition of the market tomorrow, we are ready to make the world around better, what is a peculiar feature of realtor community elite».
The leitmotif of the event was identified by Alexander Romanenko: «It is important to analyze Russian and foreign experience and bring out the most effective methods of work during the economic crisis».
Half a year ago almost all real estate market members were saying that financial problems will influence over expensive real estate market least of all. Elite apartment will not be reduced in prices because there are always buyers for elite properties. In fact it’s not that easy. «Taking into consideration results of real deals with apartments ranging in price from $ 1mln. up to 6 mln., I can say that prices for elite properties in Saint-Petersburg have decreased by 20% in Rubles. Correspondingly, this figure is 45% in US dollars, and 35% in Euros», – Leonid Rysev, general director of the «Elite Apartments»company has stated. In fact, the market has shrunk a year ago, and now the prices of the real deals are left behind about 10–15% compared to the stated ones at the haggling moment, Mr. Rysev says.
«Conditions on the market were dictated by the sellers a year ago, and now there is a temptation to define it as buyer’s market », – thinks Vladimir Feodorov, deputy director of the «Leontievsky Cape» Ltd. But everything is not so unambiguously in the elite segment, in his opinion: solvent demand is still present, in contrast to equivalent high quality offers.
According to experts, the investment constituent on the market has completely disappeared: if earlier one could expect around 30% of annual income when purchasing expensive meters, now quite another values have become leaders.
As Olga Kopeikina , Sales and marketing director of «Sestra River Developments» Ltd , says that during realization of their loft-project on the prior instrumental factory in Sestroretsk, only 10% of potential buyers have been withdrawn by the crisis. And all of them are investors, who had been planning to put up money in order to resell afterwards. Now elite real estate objects are being purchased by real comfort lovers, and liquidity of the objects is on the first place.
«If one could build a «just a house in the center», and all apartments were likely to be sold, now it is not enough», – Vladimir Feodorov says. In his opinion, the projects which will provide maximum profitability from living in a mega polis are expected to appear during the crisis.
Certain examples of that future liquidity, where everything is perfect and worth of its price, were presented during reports of the conference participants. The projects “Europe Embankment” and exclusive object in the Zoological, 2-4, from “Renaissance of Saint-Petersburg” were mentioned above all. The Last mentioned object had announced unexampled price in this segment: 50 thousand per sq. m. in nominal dollars, what by the opinion of realtors, is normal with such location.
Among exclusive projects were mentioned: «Alexandria» on Shpalernaya 32, – work of the architect Michail Mamoshin and the RBI holding, «Leontievskiy Cape» project, a house on Zacharievskaya 21.
Developers acknowledge that the market is lately full of pseudo–elite, which had never been out of the of comfort-class housing boundaries. The time has come to cleanse the «elite» phenomenon and provide the market and the buyer exact directions. Along with mentioning the prices.
Not only Saint-Petersburg was discussed during the Elite Estate conference. Some interesting reports were about elite real estate market of Kaliningrad region, South Federal district and foreign markets.
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